The log appears clean - apart from those Domain entries - I assume they are OK as you have not deleted them?
What does the taskbar icon look like? - if you click on it now, what happens? What exactly does it warn you off? Does it refer you to a website, if so which one?
It is a green wheel chair that flashes between that and a round red circle with a line through it. Nothing happens, when you click on it. It does refer you to a web site, here is the link. hxxp://www.spyfalcon.com/?aff=264
One final thought - have a look at your start-up programs (Start>Run>msconfig>(ok)>startup) and see if you can find any strange entries/programs listed which you don't recognise.
List any here - if we find it we may be able to disable it.
The damn thing is gone off my puter, have no idea what the hell I did or whatever! I did get a update from microsoft on malicious update removal and it is now gone after reboot! hmmmmmmmmmmmmmmmmmmmmmm! Thank god!
- this was the same as another one here with the problem, after using the fixes he still had the taskbar icon, then after a couple of re-boots it disappeared - no idea why either, but at least its gone